Changpeng Zhao (CZ)-backed YZi Labs, formerly Binance Labs, has made a strategic investment in Avalon Labs, an emerging Bitcoin DeFi platform building on-chain capital markets powered by BTC. The investment aims to support Avalon’s development of financial infrastructure, including BTC-collateralized lending, the Bitcoin-backed stablecoin USDa, yield-bearing savings products, and credit services.
At the core of Avalon’s ecosystem is USDa, a stablecoin collateralized by Bitcoin, which enables users to borrow, earn yields, and transact without selling their BTC holdings. Avalon has accumulated over $500 million in total value locked (TVL), making USDa the second-largest collateralized debt position tracked by DeFiLlama.
The platform services over 300,000 active users and manages more than 20,000 BTC. Avalon is preparing for global scaling with a focus on obtaining regulatory licenses in key markets and plans to launch a fully regulated public fund. The company also aims to establish itself as the world’s first fully regulated on-chain Bitcoin financial institution.
YZi Labs, managing assets exceeding $10 billion, expressed confidence in Avalon’s potential to unlock Bitcoin’s real-world usability by bridging security and liquidity with financial application development.
Following the announcement, Avalon’s native token AVL spiked approximately 15%, trading near $0.29. The new funding is dedicated to bolstering Avalon’s regulatory compliance efforts and expanding access to its BTC-backed products worldwide.
Additionally, Binance Labs rebranded as YZi Labs in 2025 to reflect its independent vision distinct from Binance exchange, with CZ personally engaging in investment projects despite a permanent Binance leadership ban.